Ownership Patterns and Control of Top 100 Turkish Listed Companies

• Main Authors: Mustafa, Aree Saeed, Che Ahmad, Ayoib, Chandren, Sitraselvi
• Format: Article
• Language: English
• Published: Macrothink Institute 2017
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/23589/1/AJFA%209%201%202017%20192%20209.pdf; http://repo.uum.edu.my/23589/; http://doi.org/10.5296/ajfa.v9i1.10878

This study aims to highlight the importance of protecting investors’ rights,and particularly those of minority shareholders.This study addresses the predominant control-ownership structure of the top 100 firms listed in Bursa Istanbul (BI) using the data for 2015. It shows the most common control-ownership structure within business groups, in which shareholders exercise control over a group of firms and maintain a small stake of firms’ equities.Turkish firms are categorised with highly concentrated ownership and families’ being the dominant shareholders owning more than 80% of all publically listed firms in BI. The study results indicate that the divergence between cash rights and control rights (wedge)in the top 100 Turkish firms is mainly achieved through pyramidal-ownership structure, dual class shares,and cross-ownership at about 41%, 40% and 11%, respectively, while approximately 8% of firms do not use wedge.Hence, wedge exacerbates Type II Agency Problems.This paper calls for future research to study the environment of wedge for Turkish firms listed in BI.